Age brings on a number of problems. The years that follow retirement require a number of major adjustments. Many of these adjustments have to take place at the psychological level. For instance, the senior citizen has to get used to his new-found status as he is no longer going to be an earning member of the family. In effect, this would mean giving up the sense of independence that he had held on to all his life. Entering the hallowed group of senior citizens generally entails that the new entrant begins to be dependent on the younger members of his family. This can give one's self-respect a beating, but is relatively unavoidable.
A lot of senior citizens find themselves running up high credit card debt to pay for a number of bills that pertain to old age. This could include the bills for doctor's visits, medications, and other related things. Senior citizens who are still reeling under the burden of a loan that they had secured earlier may even resort to a cash advance to help them pay off that loan. The credit card does lend a helping hand to the senior citizen who is trying to pay off his bills. At the same time, running up a high credit card debt cannot possibly be a good thing. Yet, many people who have passed retirement age have no other choice. Their pensions and depleted savings are not likely to be of much help when it comes to paying off a number of bills.
However, senior citizens can negotiate with their credit card providers for reduced debt. Many card providers take into consideration the age of the card holder and are willing to relax existing debt repayment terms. The credit card companies recognize the fact that several senior citizens are unable to bear the burden of heavy credit card debt. Reducing the debt owed to them makes good business sense for the credit card company while also building goodwill for them with the post-retirement age group.
Senior citizens would also do well to go in for a cheaper credit card option. Switching credit cards may be a good idea for senior citizens who are paying unnecessarily high rates of interest. Moreover, with the zero percent balance transfer credit cards available in the market, even the act of switching need not be too costly. There are great bargains to be found if one does some looking around. Growing old may not be the easiest thing in the world. But senior citizens can reduce their worries considerably.
Credit Card Debt Reduction Calculator
1. Transfer Balances
Credit card companies are always offering introductory deals, such as 0% on transfers. Usually such offers last for several months, giving you the chance to make sizeable payments on your principal.
If you have several credit cards, choose to transfer the account with the smallest amount. Pay off that account, then take that card's monthly payment and apply it to your next lowest balance. Soon you will be creating a snowball affect, swiftly lowering your debt. Make sure to close paid off accounts to raise your credit score and keep from adding to your debt.
2. Negotiate Lower Rates
Credit card companies are also willing to lower rates. You can try to do this on your own, but you will have more success with a debt management company. For a monthly fee, they will lower rates with credit card companies and handle your monthly payments.
Debt management plans can affect your credit temporarily if your creditors report delayed or reduced payments. This might prevent you from opening new accounts for a year or more. However, with such plans you can be out of short term debt in less than five years with a much better credit score.
3. Settle For Reduction In Debt
Debt negotiation is the most drastic step to lower your credit card debt since it has long term affects on your credit. A debt negotiation company can settle some of your debt with creditors. Lenders will then report the reduced amount to the credit reporting agencies, which will keep it on your record for seven years. Debt negotiation is similar to bankruptcy and can prevent you from qualifying for conventional credit for a couple of years.
Reducing your credit card debt will have long term benefits for you. Less credit means better rates when you do want to apply for financing, especially with a home or car purchase. No matter which option you choose, research companies carefully and compare their services and fees.
Both Ajeet Khurana & Carrie Reeder are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Carrie Reeder has sinced written about articles on various topics from Finances, Mortgage and Finances. View our recommended companies for .. Carrie Reeder's top article generates over 135000 views. to your Favourites.
